Drake and ISO's

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#1
Posts:
1017
Joined:
10-Jun-2019 4:20pm
Location:
WESTERN USA
I am new to Drake from Proseries and noticed it does not seem to have an employee stock options worksheet where you enter in the Grant and vest info and it calculates the gain/loss and W-2 basis and figurres out the 8949 codes. Is there Drake option I am missing or some side WS or sw to handle employee stock options?
 

#2
ATSMAN  
Posts:
2094
Joined:
31-May-2014 8:34pm
Location:
MA
Code V

Code V in box 12 of the W-2 indicates income from the exercise of nonstatutory stock options. Per IRS General Instructions for Forms W-2 and W-3:

Code V—Income from the exercise of nonstatutory stock option(s). Show the spread (that is, the fair market value of stock over the exercise price of option(s) granted to your employee with respect to that stock) from your employee’s (or former employee’s) exercise of nonstatutory stock option(s). Include this amount in boxes 1, 3 (up to the social security wage base), and 5.

As the amount is already reported in box 1 (wages, tips), which flows to line 1 of the 1040, there is no need for the amount in box 12 to flow to another section of or supporting form for the 1040.

Sch D should be a wash unless there were some broker charges added on to create a slight loss.
 


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